CA NeWs Beta*: Treasurer, Faridabad Branch of NIRC of ICAI turns whistleblower

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Wednesday, July 29, 2015

Treasurer, Faridabad Branch of NIRC of ICAI turns whistleblower

(The following is based on email recd by this news channel)

July 27, 2015
The President,
The Institute of Chartered Accountants of India
New Delhi

Ref: Notice for the meeting of Managing Committee of Faridabad Branch scheduled to be held on 03-08-2015 to change signatories to the Bank Accounts of the Branch

Sir,

This has reference to above, notice duly signed by the Chairman and the Secretary of Faridabad Branch, for meeting of managing committee scheduled to be held on 03-08-2015 is being forwarded
herewith. From the notice it is clear that they want to pass the resolution to amend the signatories authorized to operate all the six bank accounts of the Branch.
 In the meeting of managing committee of the branch held on 10-03-2015 wherein office bearers of the branch for the year 2015-16 were elected. I was elected as Treasurer of the Branch unanimously. It was also resolved unanimously that all the bank accounts shall be operated by the following persons jointly:
1)      The Treasurer , and
2)      Either the Chairman OR the Secretary
Now, as per proposed resolution, they wish to make change that all the bank accounts shall be operated by following persons jointly :
1)      The Chairman , and
2)      Either the Secretary OR the Treasurer
Sir, I would like to emphasis that the proposed resolution to amend the signatories will be in gross violation of the directions of the council and will be detrimental to the financial discipline and health of the branch. Such a decision will also encourage the person sitting on the chair of CHAIRMAN to run the branch in COMPLETE AUTOCRATIC STYLE without caring for even the fundamental principles of administration / management.  
Sir, I have been signing all the cheques as and when presented before me for signature except few cheques which were not according to the settled principles and norms of the Institute.
I wish to bring to your kind notice few instances which prompted them to amend the signatories :
1)      I disclosed one material fact to the members which came to my notice while finalization of the accounts for the FY 2014-15, that in FY 2013-14, more than Rs. 14 lacs were paid to two persons in cash against supply of food. For withdrawal of the cash, majority of the cheques were signed by the then Chairman and the Secretary. It is pertinent to mention here that the then branch secretary happens to be the present branch secretary also. (Copy of relevant ledgers are attached herewith)

2)      I also disclosed that in the FY 2013-14, a sum of Rs. 42 lacs was incurred on acquisition of fixed asset without discussion in the meeting of the managing committee and even without following due procedure as laid down by the ICAI.

3)      I have been raising issue of non holding of AGM for the FY 2013-14 in-spite of specific direction dated 26-09-2014 of the Institute.  Above referred point at para no. 1) and 2) may be sole reasons for non holding of AGM.

4)      I have withheld 4 cheques prepared in favour of those faculty members who are running their own coaching classes. The faculty members were engaged by the Branch Chairman and Secretary against the norms and guidelines of the ICAI and even without any discussion in the branch managing committee. It is worth mention here that I also sought the opinion from Board of Studies in the matter and in reply to my query Board of Studies vide mail dated 7-7-2015 clarified that such persons who are running their private coaching classes, can’t be engaged as faculty. (Copy of the same is attached herewith)

5)      I did not sign one cheque in favour of the vendor of furniture from whom the branch chairman and secretary want to purchase furniture without following due procedure which was duly explained to the Chairman and other managing committee members vide mail dated 17-06-2015. (Copy of the communication attached herewith)

6)      The Chairman denied reimbursement of Rs. 17,25,000/- used in the Building earlier, against specific direction of the Infrastructure  Development Committee dated 03-07-2017 (Copy of the mail dated 03-07-2015 attached)  

7)      The chairman wanted to make payment to one of the creditors of the Branch Building M/s Technopam Industries in violation of the mail of the Infrastructure Development Committee of the ICAI dated 03-07-2015. (Copy of the mail is attached herewith)

8)      The Chairman also wanted to make payment to M/s Technopam Industries against a bill dated 10-01-2014 (pertaining to FY 2013-14) for Rs. 32,869/- which have never been entered in the books of that year nor authorized by any person. (Copy of the same bill with duly approved voucher by the Chairman is attached)



9)      As happened in the previous years, the branch Chairman wanted to spend funds of the branch on some non CPE or cultural programs and he considers the undersigned as an obstacle in his way.

10)   Current year being the election year for Central Council and NIRC, the branch Chairman wants to spend funds of the branch to promote the candidates of his liking and he considers the undersigned as an obstacle in his way.

11)   I brought to the notice of other members of the managing committee about irregularities in the branch to be discussed in the managing committee. (Copy of the mail dated 17-6-2015 and 19-07-2015)
Sir, if the branch is allowed to pass such a resolution, it will result in to centralization of financial powers to the Chairman and office bearers of his liking only. In such situation position of Treasurer and other office bearers will become useless.
Sir, you are sitting at a highest position of the profession. You are supreme trustee of the image of the Institute. I have been elected as treasurer of the branch unanimously by all the members of the managing committee.  I have been performing all my duties with due compliance of the guidelines of the Institute but not supporting misdeeds of the chairman.  This is the main reason they want to withdraw my powers. 
Sir, I understand that recently Managing Committee of the Institute has relaxed the settled norms of the Executive Committee of the Institute to move such a resolution to change the signatories of the bank accounts without providing opportunity to the treasurer of the branch is in gross violation of principles of natural justice and ethics of our profession.  Such a one sided act from the persons sitting at the helm of the affairs was not expected at all. Such an act will lose confidence of the members at large in the Council.
Your Honor is therefore requested to withdraw the relaxation granted to Faridabad Branch against settled norms of the Institute for change the signatories to the bank accounts.
Sir, I am writing this mail to you with high hope of justice. Any injustice on the part of your Honor may force me to proceed further for appropriate course of action.
With warm regards,

CA D C GARG
Treasurer, Faridabad Branch of NIRC of ICAI

Attachments :
1.       Copy of ledgers for payment of Rs. 14 lacs in cash against supply of food
2.       Copy of mail dated 07-07-2015 received from Board of Studies, ICAI
3.       Copy of communication dated 17-06-2015
4.       Copy of the mail dated 03-07-2015 received from Infrastructure Development Committee, ICAI
5.       Copy of bill dated 10-01-2014 of M/s Technopam Industries alongwith voucher duly signed by the Chairman
6.       Copy of Cheque signed by the Chairman in favour of Technopam Industries
7.       Copy of Cheque signed by the Chairman in favour of Marz Contracts Pvt Ltd for Rs. 15 lacs against liability of
Copy to :
1.       The Vice President, ICAI
2.       The Acting Secretary, ICAI
3.       All Central Council Members, ICAI
4.       All Members, NIRC
5.       All Members, Managing Committee of Faridabad Branch
6.    All members of Faridabad
   
__._,_.___
Attachment(s) from 'CA. DEEP K. JAIN' deepjainca@gmail.com [ThaneCAs] | View attachments on the web
1 of 1 Photo(s)
5 of 5 File(s)



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